Embed Size (px)
Citation preview
VALUATION OF AIRCRAFT
2015 ADVANCED PERSONAL PROPERTY SEMINARMEGAN WILLIFORD
CUMBERLAND COUNTY
WHAT IS AN AIRCRAFT?“Any apparatus now known, or hereafter invented, used or designed for navigation of, or flight in the air.”
DETERMINATION OF SITUS
• How long has the aircraft been located in the county?• Does the owner of the aircraft live in the county?• Does the owner of the aircraft have real property in the
county?• Does the owner of the aircraft own or lease a hanger in
the county?• Does the owner pay taxes in another taxing jurisdiction?• Which airports are used by the aircraft and how often?• Is the aircraft used by a business located in North
Carolina?
FEDERAL AVIATION ADMINISTRATION
• Aircraft Inquiries• N-Number• Serial Number• State & County• Name
• Accident & Incident Data• Certified Copies of Aircraft Records
• Historical Date of Aircraft• No Charge to Government Offices
FAA REGISTRY: STATE/COUNTY INQUIRY
FAA REGISTRY: N-NUMBER INQUIRY
REPORTS BY AIRCRAFT STORAGE FACILITIES
• Required by NC General Statute §105-316• Report Annually as of January 1st
• Operators Storing Three or More Aircraft Required to Submit Report
• List Includes Name of Owner & Description of Aircraft• Must Report to County by January 15th
• Failure to Report Results in Fine & Penalty
REPORTS BY AIRCRAFT STORAGE FACILITIES
FLIGHTAWARE.COM
AIRCRAFT VALUATION
• Market Approach Best Method of Appraising Aircraft• Most Counties Use Industry Pricing Guides• Cost Approach Method for Kit & Ultralight Airplanes
• Use Original Cost & Year Purchased - B25• Special Circumstances:
• Older Aircraft• Foreign Aircraft• Further Value Research Necessary
ADDITIONAL RESOURCES
AIRCRAFTDEALER.COMTRADE-A-PLANE.COMCONTROLLER.COMPLANEDESIRE.COMGLOBALPLANESEARCH.COM
VALUATION PROCESS
• Megan Williford• Landmark Aviation• 1974 Cessna 172M Hawk II • Serial: 17261899
• Year• Model• Serial Number• Average Retail• TBO Engine Hours
1974 CESSNA 172M HAWK II ABB VALUE
1974 CESSNA 172M HAWK II ENGINE LOG
LOG DATE: 9/2/13 TACH: 224.3 SMOH: 1969.8 TBO: 2000
1974 CESSNA 172M HAWK II APPRAISAL• Valuation Based on January 1• Engine Logs Dated 9/2/13• Average Engine Hours are 75-100 Hours per Year (Cumberland County = 100 HPY)• Exception: Trainer Planes 600 Hours per Year• Twin Engine Aircraft: Both Engines Depreciated Individually Based on Hours
100 Hours/12 Months = 8.33 September 2013-January 2014= 4 months
8.33 x 4 = 33.32Since Major Overhaul Hours (SMOH) at Inspection: 1969.8 + 33.32 = 2003.12
• Use depreciation chart for TBO 2000 hours to determine percentage of depreciation.
TBO 2000 HoursHightime Depreciation2000 – Over 30%2000 – 1500 25%
1974 CESSNA 172M HAWK II APPRAISALTOTAL TIME ON AIRFRAME• ABB Supplemental Pricing Information• Airframe Total Time Table & Chart Page A-2• Gives Average Airframe Hours per Year• 191 Hours Per Year
1974 CESSNA 172M HAWK II APPRAISALTOTAL TIME ON AIRFRAME
TTAF: 4641.5 in 2014Average Airframe Hours Per Year: 191
Airplane Age: 40
TTAF/AGE = HOURS PER YEAR
4641.5/40 = 116.04
No Overage = No Airframe Depreciation
1974 CESSNA 172M HAWK II APPRAISALTOTAL TIME ON AIRFRAME
If the aircraft is over the average, you must calculate the percentage the overage represents.
Determine if your aircraft is a late-model series or early-model series by the year range on the Airframe Total Time Table & Chart.
Ex. Cessna 1974 Range 1956-1974: Late-model Series.
TTAF/AGE = HOURS PER YEARHOURS PER YEAR- AVG HRS = EXCESS
AVG HRS/EXCESS = %
• Locate your % at the bottom of chart (x-axis) and follow the line up to the shaded area of the “deduct arc” (shaded for the model series).
• Trace that line over to the left side (y-axis) to find the % you will deduct from the aircraft value.
IS EVERYONE STILL WITH ME?
1974 CESSNA 172M HAWK II APPRAISALINTERIOR & EXTERIORTaxpayer may provide photos of the interior and exterior of
the aircraft.The Aircraft Blue Book provides a rating scale to determine
the percentage of depreciation for the interior and exterior.The rating scale is from 1-10, 1 being the worst condition, 10
being a new aircraft. Each rating is also given a percentage of adjustment.
Rating 1 Interior 10% - Interior is so dirty and worn that most people would be hesitant to sit in it.
Rating 1 Exterior 20% - Exterior is so full of corrosion, heavy dents, or tears that it will not pass annual inspection without repairs.
RATING: 7 2% ADJUSTMENTA SMALL AMOUNT OF WEAR IS APPARENT. SMALL SCRATCHES AND/OR STAINS. REMOVABLE STAINS. NO NICKS IN WOODWORK. HEADLINER IN GOOD SHAPE.
INTERIOR AIRCRAFT RATING
INTERIOR AIRCRAFT RATING
RATING: 2 9% ADJUSTMENTCRACKS, STAINS, TEARS AND SNAGS. EXPOSED FOAM IN SEATS. INTERIOR IS DIRTY.
RATING: 8 2% ADJUSTMENTPAINT AND AIRFRAME ARE IN NEAR NEW CONDITION. MINOR SCRATCHES ARE DETECTABLE ONLY
ON CLOSE INSPECTION. PAINT ON FASTENERS AND SCREWS MAY BE CHIPPED.
EXTERIOR AIRCRAFT RATING
RATING: 1 20% ADJUSTMENTAIRFRAME IS SO FULL OF CORROSION, HEAVY DENTS AND/OR TEARS THAT IT WILL NOT PASS AN
ANNUAL INSPECTION WITHOUT REPAIRS.
EXTERIOR AIRCRAFT RATING
KIT AND ULTRA LIGHT AIRPLANESUse Cost ApproachNeed Bill of SaleDetermine Purchase Year and CostDepreciate Aircraft on Schedule B2525 Year Life – Residual 25%Cumberland County:
Default Value $25,000Default Residual $6,250
ANTIQUE AIRPLANES
• N.C.G.S. §105-277.12 provides for a special valuation of aircraft that meet the following conditions:• Model Year 1954 or Older & Registered with the FAA• Primary Use: Exhibitions, Club Activities, Airshows, Other
Public Interest Functions• Only Occasional Use for Other Purposes• Not Used for Income Production
• Must apply by January 31st and provide copy of FAA registration.
• Assessed at lower of market value or $5,000.
